SEC Seizes $4.3 Million in FX Ponzi Schemes

The Securities and Exchange Commission (SEC) has initiated charges against 26-year-old John Fernandez and his two firms, Avail Progression and Elite Generators, for running two unlicensed and fraudulent forex trading schemes.

Fernandez and his firms are suspected of scamming more than 100 investors after raising more than $4.3 million, according to formal allegations filed last Friday.

Fernandez, a Texas native, has no professional trading experience. He convinced his victims, assuring them that “he was a trading genius with an established track record who could guarantee profits up to 100% based on his trading tactics in the forex markets.” He promised investors guaranteed profits, as do other fraudulent investment schemes. He sent them basic offering documentation that listed the number of returns and the dates when they would be received.

SEC Takes Down Ponzi Schemes $4.3 million is the estimated cost.

However, Fernandez did not use the earnings to trade FX instruments. Instead, he plundered the funds and used them to support his own lifestyle. He also produced a “litany of excuses” when investors contacted him for missed refunds.

He began with Avail Progression and then moved on to Elite Generators after the first plan ran out of funding. He scammed investors with both scams.

The SEC has now accused Fernandez and his two firms of breaching the US securities act's antifraud and securities registration rules. The regulator is seeking permanent injunctions of the accused, along with civil fines and disgorgement of ill-gotten earnings with prejudgment interest against each defendant. Furthermore, the charges aim to bar Fernandez from becoming an officer or director of any public business.

SEC Takes Aim at Curbing Ponzi Schemes

Trading market demand has skyrocketed in recent years, as have investment frauds. The SEC recently accused eight well-known personal finance gurus of participating in a $100 million pump-and-dump scam. Furthermore, the watchdog recently took action against two bitcoin Ponzi schemes.

Meanwhile, in Europe, Spanish authorities detained a senior person from the brokerage investing platform EverFX.

Last words

We are all aware that online trading is a high-risk investment. Do not be quickly attracted to the offers from those who say they are dealing with authorized brokers. Remember that financial authorities closely monitor scam brokers and they don't forget to notify the public when a new list is published. Better to ask first or do in-depth research to know the status of your chosen broker. WikiFX gives a variety of details about the broker, encouraging users to use the app more often in order to avoid dealing with fraudulent brokers.

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